The Economist Magazine: Customer Response to Discount Offer Evaluation

This dissertation investigates customer responses to discount offers on The Economist magazine, analyzing the effectiveness of these offers in attracting customers and influencing their purchase decisions. The study employs a positivism research philosophy and an inductive approach, collecting primary data through questionnaires and secondary data from various sources. The research explores the impact of discounts on sales, identifies factors affecting customer behavior, and uses both qualitative and quantitative methods for data analysis, including thematic and statistical analysis. The findings reveal that the Economist magazine strategically uses discounts, and the study highlights the influence of factors such as product quality, marketing, and pricing on customer decisions. The dissertation concludes with recommendations for the magazine to enhance its customer engagement through strategies like free shipping and percentage-based discounts. The research provides a comprehensive understanding of how discount offers impact customer behavior and sales within the context of a leading magazine, offering valuable insights for marketing strategies and business development.

DISSERTATION
(To evaluate the customer response to discount offer
on magazine sales: A case study of the economist)

ABSTRACT
Assessing response of the customers towards the discount offers on magazines is the major aim
of current investigation. For the current investigation study has been chosen a well-known and
leading magazine of economist group. Economist group is known as leading source analysis of
different international business and latest and current trends and affairs of the markets. It
communicates large amount of information to whole society through newspapers and magazines.
The main aim of the present study is to evaluate the customer response to discount offer on
magazine sales where economist group has been considered. For conducting in-depth
investigation of customers behavior towards the discount offer in economist researcher has used
the positivism research philosophy, inductive approach, primary data collection from customers
through questionnaire, secondary through books, journals and online articles. Data analysis has
been done with the help of qualitative and quantitative methods. Research study has also
disclosed that when economist magazine uses the discount offers on regular basis or for a
specific purpose or occasion. After completing data analysis author has found that economist
magazine provides different discount offers at different time. Thematic analysis has reflected that
economist magazine uses the number of discount offers for attracting customer. Along with this,
research study has also found that there are number of factors which can influence the purchaser
decision and behavior of customers of economist magazine. According to the data analysis these
factors are discount offers, quality of products, marketing and promotion and price of magazine,
etc. Hence from this it can be concluded that economist group is mainly focused with the latest
and current trends and affairs of the markets and publish it in through newspapers and
magazines. It has been identified that this company does not make any discount offer on their
magazine but sometimes it provides different discount offers to its customers. On the basis of
conclusion there are some recommendations to business such as considering free shipping, free
gifts, percentage based discounts on magazines etc.

TABLE OF CONTENTS
Abstract............................................................................................................................................2
Chapter 1: Introduction....................................................................................................................1
1.1 Title...................................................................................................................................1
1.2 Background............................................................................................................................1
1.3 Project rational.......................................................................................................................1
1.4 Aim and objectives................................................................................................................2
1.5 Research questions.................................................................................................................3
1.6 Focus and purpose.................................................................................................................3
1.7 Dissertation structure.............................................................................................................3
1.8 Framework and analysis........................................................................................................4
1.9 Significance of the research...................................................................................................6
Chapter 2: Literature review............................................................................................................7
2.1 Introduction............................................................................................................................7
2.2 Discount offers on economist magazine................................................................................7
2.3 Role of discount offers in influencing customer’s behavior..................................................9
2.4 Impact of discount offers on sales of the organization..........................................................9
2.5 Factor that can influence customer’s behavior....................................................................11
2.6 Research gap........................................................................................................................16
CHAPTER 3: Research Methodology...........................................................................................17
3.1 Introduction..........................................................................................................................17
3.2 Research Aim and Objectives..............................................................................................17
3.3 Research questions...............................................................................................................17

3.4 Research philosophy............................................................................................................18
3.5 Research approach...............................................................................................................18
3.6 Research design...................................................................................................................19
3.7 Strategy of the research.......................................................................................................19
3.8 Data collection methods......................................................................................................19
3.9 Sampling..............................................................................................................................20
3.10 Data analysis......................................................................................................................21
3.11 Ethical issues.....................................................................................................................22
3.12 Limitations of the study.....................................................................................................22
3.13 Validity and reliability.......................................................................................................23
Chapter 4: data analysis.................................................................................................................24
4.1 Introduction..........................................................................................................................24
4.2 Thematic analysis................................................................................................................24
4.3 Statistical analysis................................................................................................................31
4.4 Interpretation and discussion...............................................................................................34
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................37
5.1 Conclusion...........................................................................................................................37
5.2 Recommendations................................................................................................................41
REFERENCES..............................................................................................................................44
APPENDIX 1.................................................................................................................................47
Questionnaire for management team of Economist magazine..................................................47
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CHAPTER 1: INTRODUCTION
1.1 Title
To determine the effectiveness of discount offers in influencing customer purchase
decision: A case study of the economist.
1.2 Background
Assessing response of the customers towards the discount offers on magazines is the
major aim of current investigation. Behaviour of customers is generally affected by number of
discount offers of the organization. Here customer behaviour means purchase decision, attraction
of customers, repeat purchase and buyer’s behaviour at the time of buying goods and services of
an organization. For the current investigation study will be chosen a well-known and leading
magazine of economist group. Generally businesses introduces discount offers with the motive
of raising sales volume and financial performance of the organization. It plays very important
role in attracting customers also. Introducing additional offers is one of the major requirement
for sustaining longer time period (Kriz, Gummesson and Quazi, 2013). These additional offers
help in increasing sales of the organization and influencing customers to purchase products and
services of the company. In contrast, discount offers play important role in increasing sales
volume for the organization which leads increment I overall profitability of the firm.
Economist group is known as leading source analysis of different international business
and latest and current trends and affairs of the markets (Andrews, Luo, Fang and Aspara, 2014).
It communicates large amount of information to whole society through newspapers and
magazines. Data and information of this magazine is reliable and trustful for all readers. Selected
organization is famous at international level and main headquarter of this organization is in the
city of Westminster, London. Major functions of this organization is providing services of
magazine, market intelligence and conferences, etc. Generally economist group does not provide
large number of offers on their magazine but sometimes it provides different discount offers to
its customers (Brown-Johnson and et.al, 2014). Strong competition in the market is one of the
major reason behind these offers.
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1.3 Project rational
Project rational provides appropriate justification about the current investigation. It will
also communicate major reason because of them researcher has decided to accomplish the whole
investigation.
Strong competition and negative impacts on sales performance of an organization is one
of the major problem for each and every organization (Li, Zhao and Chen, 2012) . Due to this
reason economist is also facing reduction in number of customers and market share which affects
the overall performance of the company in whole industry. So, it is considered as major research
issue. Which will be considered by researcher at the time of conducting investigation.
It is an issue because most of the organizations and competitors of economist group if
magazine are using different discount offers for attracting customers (Discount strategies, 2016).
And switching cost if very low for customers which reduces the total number of customers for
the organization and decline the sale of the company. So, it is one of the major research issue for
whole investigation.
It is an issue now because from last few years economist is also providing various
discount offers to its customers (Yang and et.al, 2013). Along with this, company is investing
huge amount of money on marketing and advertisement. But still organization has not analyzed
the actual impact of these offers on sales of the company. Along with this, as per the background
study these offers are affecting the brand image of the company in negative manner. So, at
present it is one of the contemporary issue for economist. Some, author has decided to conduct
study on this subject and organization (The economist, 2016).
For resolving this research problem research will shed light on effectiveness of different
discount offers in attracting customers. Along with this, it will also focus on impact of these
discount offers on sale of economist magazines. In addition, research will also focus on different
factors which influence purchase decision of customers (Role of Consumer Behaviour in
Marketing, 2016). Overall, these considerations will help in getting appropriate solution to
resolve research issue in effective manner.
1.4 Aim and objectives
Aim:
Major aim of the current research is “To determine the effectiveness of discount offers in
influencing customer purchase decision: A case study of the economist”.
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Objectives:
 To identify the effectiveness of discount offers in attracting customers
 To understand the impact of discount offers on sales of economist magazines
 To assess the factors influencing purchase behaviour of customers
 To recommend the effective ways through which economist can better influence its
customer response
1.5 Research questions
1. How effective are the discount offers in attracting customers?
2. What is the impact of discount offers on sales of economist magazines?
3. What are the factors influencing purchase behaviour of customers?
1.6 Focus and purpose
As per the aim and objectives of the current investigation author will focus on economist
which is a leading magazine. Along with this, research will also shed light on different discount
offers which are provided by organization to their customers. Along with this, it will also focus
on purchase decision making process of different customers. In addition, focus will also be given
on research issue. Major purpose of the current investigation is determining impact of discount
offers on purchase decisions and customer’s behaviour (Sarkar, Sana and Chaudhuri, 2013).
Along with this, study also wants to determine that how discount offers can influence the sales of
magazine business. Overall effectiveness of various discount offers on overall performance of
organization is one of the major purpose of the current investigation.
1.7 Dissertation structure
 Chapter 1: Introduction: It is one of the important chapter which provides brief
information about the whole investigation It will comprise aim, objectives and rational of
the whole investigation. Along with this, it will also include information about the
structure of the entire dissertation and research methods which will be used by researcher
for completing investigation on discount offers of magazines of economist group
(Mahdiloo, Noorizadeh and Farzipoor Saen, 2012).
 Chapter 2: Literature review: This segment of the dissertation will comprise historical
data about the discount offers and its impact on customer’s purchase decisions. Along
with this, it will comprise findings of the different past research studies which can help in
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getting insights to understand the research subject (Gay, Mills and Airasian, 2011).
Therefore, whole literature review will help in determining research gap for the current
investigation.
 Chapter 3: Research methodology: It is one of the important chapter which will
comprise number of research methods which play important role in conducting
investigation in an appropriate manner. These methods will help in developing research
plan for collecting and analysing facts and figures for resolving research issue (McMillan
and Schumacher, 2014). This chapter will include research philosophy, design,
techniques, data collection and analysis methods.
 Chapter 4: Data analysis: There are number of research techniques which play important
role in analysing and examining collected information about the discount offers of
selecting economist magazine (Garner and Scott, 2013). This chapter will include data
analysis process\, interpretation and findings for the current investigation which will help
in making final and meaningful conclusion for the whole study.
 Chapter 5: Conclusion and recommendation: This chapter will include conclusion for
the whole investigation which will provide information about the response of customers
to discount offer on magazine sales. It will describe about the effectiveness of the
discount offers in attracting customers and changing their purchase decision (Zeto and
et.al, 2013). This chapter will also recommend appropriate strategies to economist
magazine by which they can influence customers in better way.
1.8 Framework and analysis
It is an important part for the whole study because it helps in completing investigation in
appropriate manner. Following framework and analysis will be used by researcher for the current
investigation:
 Research philosophy: For conducting in-depth investigation of customers behaviour
towards the discount offer in economist researcher will use the positivism research
philosophy (Colina-Coca and et.al, 2014). It has been chosen by researcher because it is
based on objectives of the research as well as tries to resolve research problem in
effective manner. Along with this, using this paradigm author will understand the
research phenomenon in effective manner.
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 Research approach: It is known as plans and procedures for the research that can span
the steps form broad assumptions to detailed methods for collecting, analysing and
interpretation facts and figures for resolving research problem (Cochran, 2012). There are
two types of research approach inductive and deductive. In which current research will
use inductive approach of the research because it is based on research question rather
than hypothesis. Along with this, it also play important role in in conducting investigation
from specific to general manner by which study can develop new theory ion impact of
discount offers on customer’s response.
 Research design: Developing an appropriate plan for whole investigation author needs to
select an appropriate research designs (Dearle, 2015). Author will use descriptive
research design for accomplishing investigation for the current investigation. It will be
used by author because it is appropriate for conducting survey of managers of economist
magazine about the discount offers and its impact on sales performance. Along with this,
it also helps in understanding subjective concepts of the current investigation.
 Strategy of the research: For conducting investigation on discount offers on economist
magazine researcher will use both qualitative as well as quantitative methods (Creswell,
2013). A qualitative method has been chosen by researcher for examining subjective and
theoretical information about the research subjects. On the other hand, data of survey will
be analysed by different quantitative tools which will play important role in making final
conclusion for the whole investigation.
 Data collection methods: Analysing customer’s response towards the discount offers
study needs to collect appropriate facts and figures about the research subject. For the
current investigation researcher will collect data from both primary and secondary data
collection methods (Mahdiloo, Noorizadeh and Farzipoor Saen, 2012). Primary data
collection techniques play important role in obtaining new and fresh information about
the research subject. It will be collected thorough survey methodology and regarding this,
author will conduct survey of management team. A structured questionnaire will be
suitable source for gathering information about the manager’s response towards discount
offers on economist magazine (Sarkar, Sana and Chaudhuri, 2013). But on the other
hand, author will use secondary data collection methods for collecting historical facts and
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figures about the subject. Regarding this author will use literature review which will help
in determining research gap on specific subject.
 Sampling: For primary data collection author needs to select sample from management
team of economist magazine. Regarding this, author will use random number sampling
method which is a most popular probability sampling method and provides an equal
chance to each and every manager to select in sample of current investigation. Sample
size for the current investigation will be 20 (McMillan and Schumacher, 2014). It will be
appropriate for representing characteristics of the whole research universe.
 Data analysis: For analysing collected facts and figures author will use both quantitative
and qualitative tools and techniques. In which thematic analysis will be appropriate for
examining theoretical information about the research subject (Cochran, 2012). On the
other hand, statistical test and different other methods will be appropriate for examining
numerical data about the customer’s response and sales of economist magazine.
1.9 Significance of the research
As per the expected outcomes research will concluded that discount offers enhance the
sales of economist magazine. Along with this, it attracts high number of customer which helps in
augmenting overall financial performance of the organization (Zeto and et.al, 2013). Therefore,
the current study will get findings about the actual impact of discount offers on sales
performance of different businesses. So, it will be beneficial for organizations of different
industries because they can select appropriate strategies for offer and discount. Along with this
findings of the current investigation will be significant for all those research scholars who wants
to conduct study on similar subjects on different other organization. In addition, it will be
beneficial for all those research analyst who uses different research studies for analysing
business performance of various organization. PhD scholars can conduct their investigation by
using the research techniques which have been used selected by the current investigation (Gay,
Mills and Airasian, 2011). It will be a source of data for all researcher who wants to accomplish
a systematic investigation on any research subject.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
A literature review can be defined as an assessment of a body of research which helps in
resolving research problem and getting appropriate solution of research question (Yang and et.al,
2013). It is based on literature on the current subject. For the current study author will focus on
historical facts and figures about the discount offers, customer’s behaviour and economist
magazine and its marketing strategies. Literature review is conducted by using different sources
such as books, journals, literature, and website of the organization, articles and blogs. All these
sources will play important role in getting most appropriate literature. It will also help in getting
appropriate insights to understand the research subject and problem in effective manner. The
current literature section will focus on Discount offers on economist magazine, Role of discount
offers in influencing customer’s behaviour. Along with this, study will also collect secondary
information about impact of discount offers on sales of the organization and factor that can
influence customer’s behaviour (Role of Consumer Behaviour in Marketing, 2016).
2.2 Discount offers on economist magazine
Garner and Scott, 2013 has concluded that “there are number of marketing strategic
which are used by organizations for promoting their products and services” (Garner and Scott,
2013). As per these statement organizations uses various marketing strategies such as television
ad, email, mobile, digital, internet marketing, social media marketing and various promotional
tools also. Similarly, Creswell, 2013 has concluded that “Promotional tools comprise discount
offers, sales promotion, lottery, public relations and coupons, etc” (Creswell, 2013). According
to this statement discount offers are one of the important part of marketing and promotion of
different products and services of the organization. But on the other hand, Colina-Coca and et.al,
2014 has asserted that “discount offers are considered as important pricing strategy which are
used by organizations for attracting customers and increasing sales performance of particular
products” (Colina-Coca and et.al, 2014). Moreover, Dearle, 2015 has stated that “Pricing
strategy and discount offers have direct impacts of profitability which are made by
organizations” (Dearle, 2015). So, at the time of deciding pricing strategy organization needs to
focus on appropriate considerations because it helps in meeting sales objectives, company
reputation and making best profits for the market demand. It is a fact that discount pricing
strategy is significant for driving traffic and sales for short term. Zeto and et.al, 2013 has asserted
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that “long term discount strategy” (Zeto and et.al, 2013). Similarly, Yang and et.al, 2013 has said
that “sometimes discount offers create misconception about the quality of the products and
services of the organization” (Yang and et.al, 2013).
Generally discount pricing strategy is adopted by organization for increasing sales
volume of the products on the basis of the low price strategy. Cochran, 2012 has concluded that
“In discount pricing strategy organization needs to focus on producing high quantity products at
low price rate and in this case organization needs to reduce the total cost rather than declining
quality of the products and services” (Cochran, 2012).
Sarkar, Sana and Chaudhuri, 2013 has conclude that “there are different types of discount
strategy such as discount on the basis of purchase volume, loyalty, promotion and seasonal”
(Sarkar, Sana and Chaudhuri, 2013). Dearle, 2015 has asserted that “A specific type of discount
in which organization offers a free product to its customers on purchase of a fixed amount of
products” (Dearle, 2015). Generally, these discount offers are provided by companies for loyal
and long term customers of the company. In contrast there is some seasonal discount also in
which organization provide some discount of price of products to all those customers who buy
products during off peak time. It is generally used by companies for increasing sales at the time
of starting of peak season. But on the other hand, Mahdiloo, Noorizadeh and Farzipoor Saen,
2012 has concluded that “Generally promotional offers are provided by organization for drive
sales for very short time” (Mahdiloo, Noorizadeh and Farzipoor Saen, 2012). These types of
discounts are started by organization for all those customers who are waiting for sales and price
cut. Sometimes it may damage the profitability of the organization but on the other hand it can
lead increment in the total sales of the organization at the time of promotion. Overall, these are
number of discount offers and strategies which can be used by organizations for attracting
customers and increasing sales but organization applies these strategies on the basis of the
market demand and situations (Gay, Mills and Airasian, 2011).
Further, it is well known fact that when discount and other form of additional benefits are
provided by company on its products then it directly influences purchase behaviour of target
market. This leads to rise in level of customer satisfaction and allows target market to indulge
into activities of repeat purchase (Cochran, 2012). Apart from this, it has direct impact on the
sales volume where more commodities are purchased by target market and this also Assist
Company to become leader in the market. Discount is regarded as an effective form of promotion
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